It’s been nearly two years since Alaska Air Group announced plans to merge with Hawaiian Airlines, and the combined company is still moving through some challenges.
Hawaiian Airlines recently named former Alaska Air Group executive Diana Birkett Rakow as its CEO. Her biggest challenge: finishing the combination of the two airlines, while maintaining separate branding.
Alaska Air Group officially acquired Hawaiian Airlines in September of last year for $1.6 billion, setting off a long integration process.
In August, the company launched its new combined frequent flier program, Atmos Rewards, and finished integrating the HawaiianMiles rewards program in October.
That puts the company about halfway through its list of integration goals.
Still to come: combining the passenger service system, which manages all operations from booking to boarding. And it also must complete collective bargaining agreements for employees spread among five different units within the company.
Birkett Rakow is working to complete these goals within the next year and a half, while making the transition as smooth as possible for both employees and customers.
In 2016, Alaska Air acquired Virgin America for $2.6 billion and dissolved Virginʻs identity into Alaska Air.
Understanding the cultural importance of Hawaiian Airlines' local identity, the company is using a different approach with this deal. Alaska Air Group wants to keep Hawaiian Airlines as a separate corporate arm, including maintaining a Hawaiʻi-based CEO.
Concerns over the airline’s identity possibly being lost in the merger, as well as concerns about job cuts, have persisted since the deal was announced.
But Birkett Rakow says the company has been hiring more employees and promises the brand will stay true to the culture of the islands.
